Blockchain uses a decentralized network to authenticate transactions and record them on a shared public ledger.

Each set of transaction entries represents a block in the chain. This system allows for secure record-keeping without relying on a central authority to govern the transactions.

But what does this have to do with journalism?

Digital monetization begins

Online news publications currently have two options for monetizing their platforms.

Larger operations have opted to put either some or all content behind paywalls — this works for industry giants like The New York Times and The Washington Post, but the vast majority of publications do not command enough market space to justify a paywall.

Most online news publications depend entirely on advertisements and donations for revenue, but there’s a mythic third option that many computer scientists have been pursuing for quite some time.

A micropayment means paying a few cents for access to a single piece of digital content (like a news story).

Using blockchain for micropayments

Because blockchain functions as a platform to facilitate peer-to-peer transactions, there are a few news organizations that believe blockchain technology finally will enable micropayments to be widely adopted in the U.S.

AP’s partnership with Civil Media also will leverage blockchain to track AP content and enforce licensing on digital platforms.

Civil’s digital economy is based on Ethereum, the world’s second most popular cryptocurrency. Unlike blockchain, which is solely designed to transfer funds, Ethereum’s coins (called ether) can be used to facilitate a wide range of transactions, called smart contracts.

Ethereum is a special ingredient that Civil Media is banking on to make micropayments work.

The future looks bright, but it’s complicated

New publications have sprung up in support of Civil Media’s ambitious goal.

Popula is a new online news publication developed specifically for Civil’s blockchain-backed news network.

“Decentralization — keeping important information verifiable, and permanently stored across a whole lot of independently-controlled computers — is central to all our work for the future of journalism on the blockchain-based Civil publishing platform,” Bustillos writes, in a recent blog post. “The Civil token (CVL) will allow all of us — all our writers and readers — to participate fully in protecting the continued integrity of our journalism.”

Like many fledgling technologies, the concept suffered from its own complexity.

Blockchain’s ability to monetize reader engagement through decentralized transactions has the capacity to transform digital journalism, but the concept must be simplified before mainstream markets are likely to catch on.

With any luck, Civil’s unsuccessful ICO represents the first step on a road to making digital journalism more profitable, so the global news industry can continue to evolve and grow.

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Julian Dossett is a freelance writer and black coffee enthusiast. He’s based in New Mexico.